Sucro Announces First Quarter 2026 Results
Sucro’s profits melt as tariffs and ramp-up costs bite, despite record refinery volumes.
The most recent news (May 20, 2026) reports Q1 2026 results with net income down 55.3% and Adjusted EBITDA down 48.0% year-over-year, even as refinery delivery volumes doubled. Revenue fell 4.2%. The company blames market dynamics: lower prices, higher logistics/freight costs, and tariffs that couldn’t be passed on. New assets (Hamilton, University Park) are in ramp-up phase. The company is seeking $6.2M in tariff refunds after a Supreme Court ruling. Earlier, on April 24, 2026, Sucro called on USDA to retract a flawed molasses report. The Q4 2025 results (April 16) showed full-year net income up 69.3%, but Adjusted EBITDA down 9.4% and Adjusted Gross Profit per MT delivered fell sharply. In March 2026, Sucro announced a domestic raw sugar supply agreement with HMC Farms for its new University Park refinery, targeting ~350,000 MT/year production, with the Hamilton Ontario facility to be shut down in April 2026. In late 2025, Sucro formed a Guyana refinery JV (15% stake) and launched engineering services. The Q3 2025 results showed improved refinery margins, but overall sugar deliveries fell. Throughout 2025, Sucro consolidated Sweet Life Services via a share-swap acquisition.
The Q1 2026 earnings are clearly negative, with substantial profit declines despite volume growth. This is a material negative event, but not a game-changer; the market likely expected some pressure given broader industry headwinds. The miss on margins and the sharp drop in Adjusted EBITDA (down 48%) indicate cost inflation and tariff impacts are severe. The tariff refund possibility ($6.2M) is a potential positive but not yet realized. The USDA molasses report dispute is a regulatory negative but not unexpected given trade tensions. The supply agreement with HMC Farms is positive for long-term domestic supply, but near-term ramp-up costs are hurting. The stock price has been weak, falling from highs around $13.50-14.00 in mid-2025 to recent $12.10, with a 52-week low of $10.01. The Q1 2026 news likely reinforces the downtrend. Overall, the most recent news is Material - Negative due to significant miss on profitability vs. prior year and the forward-looking caution about high costs and tariffs. However, the market may have already priced in some weakness given the stock’s decline. But the data shows price was around $12.10 before earnings, near the recent average. The negative results could push it lower relative to support at $11.47-$11.50. I need to see if there are any material positive surprises. No. The earlier Q4 2025 showed a net income beat but that was due to unrealized gains; adjusted figures were soft. The trend is deteriorating margins. So Material - Negative.
Sucro Limited is an integrated sugar supply chain company, operating refineries in Hamilton, Ontario (originally), and new ones in University Park, Illinois, and Memphis (included in 2026). It also trades and distributes sugar. Flagship project appears to be the University Park refinery with capacity of 350,000 MT/year, supported by domestic supply from Louisiana (HMC Farms). The company has a Guyana JV for a new refinery. Sucro also launched engineering services. The business model involves refining raw sugar, trading, and logistics.